By Steven Mauss, CEO and President at Knowledge Relay, Inc.
Power companies know there are significant risks that arise when they cannot accurately align their project control systems (for example, Oracle Primavera E6 EPPM) with their financial reporting systems (such as SAP).
These operational and regulatory risks not only jeopardize financial accuracy and efficiency, but also regulatory compliance, investor confidence, even staffing and growth.
Knowledge Relay is committed to helping power utilities tightly align these critical-but-disparate data systems. How?
- With our unique data migration/ETL that feeds our advanced data metrics and analytics software;
- By automating your data migration and reporting tools; and so,
- Improving your management visibility, speed, decision-making, and performance (across Power Generation and Transmission & Distribution) while reducing risk.
What risks might you worry about?
Financial reporting risks such as:
- Inaccurate financial statements caused by discrepancies between project costs tracked in the project control system and those reported in the financial statements—potentially misleading investors and regulators
- Delayed reporting when manual reconciliation between systems becomes time-consuming and error-prone—potentially hindering investor communications and attracting regulatory scrutiny
- Missed cost savings where the ineffective tracking of project costs makes it difficult to identify and capture cost-savings during project execution—potentially leading to higher overall project expense
Operating risks such as:
- Duplication of effort where manually entering data into both systems can be time-consuming and resource-intensive—diverting resources away from other critical activities
- Lack of visibility when IT systems without a tight link between project data and financial data prevent a holistic view of project performance and fiscal impacts—slowing critical decision-making and obstructing project controls
- Increased risk of fraud where misalign systems create opportunities for fraud or errors to go undetected—a terrible risk for large, complex projects with significant financial implications
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Regulatory and compliance risks such as:
- Non-compliance with accounting standards when disparate systems fail to accurately report project costs and financial performance—potentially violating accounting regulations and leading to fines, penalties, and damage to your utility’s reputation
- Difficulty in meeting regulatory requirements when regulators require specific data points or reporting for projects—potentially impacting your ability to comply with requirements and so delay approvals or licenses
- Loss of investor confidence when inaccurate or delayed financial reporting begin to erode investor confidence—potentially leading to decreased share prices or difficulty raising capital
Additional business risks including:
- Reduced project success when the lack of accurate data and insights hinders effective project management and decision-making
- Missed opportunities for growth when inaccurate cost data makes it difficult to identify and capitalize on profitable new projects or investments
- Reduced employee morale when inefficient processes and lack of transparency can lead to employee frustration and decreased productivity
To address all of these potential risks, power utility companies must achieve better integration and alignment between their project control and financial reporting systems.
Knowledge Relay can help by implementing data integration solutions, automating data transfer processes, establishing clear protocols for data ownership, and elevating your data visualization for faster, more accurate reporting.
By helping your power company to create a sole source of truth for all your project data, Knowledge Relay solutions can improve your financial accuracy, operational efficiency, and regulatory compliance—ultimately leading to better performance.